"Silver Loading" is a strategy used by insurers to manage the cost of Cost Sharing Reductions (CSR). It can have a surprising impact on which plan offers the best value for you.
What is Silver Loading?
Insurers load the extra cost of CSRs onto Silver plan premiums. This makes Silver plans more expensive, but it also increases the premium tax credits (subsidies) available to consumers, since subsidies are benchmarked to the second-lowest-cost Silver plan.
Why Silver Plans Might Be Better
If you qualify for CSRs (income between 100% and 250% FPL), a Silver plan is almost always the best choice because it lowers your deductible and copays significantly.
The Gold Plan Anomaly
Because subsidies are higher due to Silver Loading, you might find that a Gold plan (which has a lower deductible than a standard Silver plan) costs less in monthly premiums than a Silver plan. Always compare the total costs!